With a steady stream of new investments, Bitcoin ETFs are having a banner year, says Eric Balchunas from Bloomberg. After a brief pullback in June, momentum has returned with a vengeance. Daily investment surged to $300 million yesterday, bringing the weekly total to a staggering $1 billion.
The surge has pushed the year-to-date amount invested in Bitcoin ETFs to $16 billion, well ahead of initial projections of $12-15 billion for the full year. And there are still six months to go, reports the expert.
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When asked about the prospects of Ethereum ETFs, though, Balchunas estimated that they could attract "about 20% of what we've seen with Bitcoin." This suggests that the positive trend in the crypto ETF market is likely to continue.
the Bitcoin ETFs are in "two steps forward" mode after one step back in June with another +$300m yesterday and $1b for week. YTD net total (the most imp number in all this) has crossed +$16b for first time. Our est for first 12mo was $12-15b so already cleared that w 6mo to go. pic.twitter.com/0V7wE9D5OU
— Eric Balchunas (@EricBalchunas) July 16, 2024
Adding to the excitement, the SEC recently granted preliminary approval for ETFs linked to Ethereum. This paves the way for a bunch of new altcoin ETFs that could begin trading as early as July 23.
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This record-breaking increase in Bitcoin ETF investment shows that more and more people are getting interested in cryptocurrency. ETFs are a well-known and regulated way to invest in the crypto market without having to deal with the hassle of buying and holding on their own.
If ETH ETFs become a thing, it will probably make it easier for more investors to get involved in this fast-developing asset class.
